Diwali 2019: The festive season is almost here and you must be excited to celebrate this auspicious period with your family and friends. Diwali is a festival which is celebrated in across India with full enthusiasm and happiness. But are you really prepared financially for this festive season? Have you planned your budget for this occasion? It is easy to get carried away by big billion sales and massive discount offers that fill your newspapers or online space. We often rush into our purchases courtesy some aggressive advertising during the festival season.
Obviously you will spend extra money during the festivals but it is also important that you plan your finances. It is important to track things wisely so that you don't get into a debt trap post the festivals. How 'wisely' you spend money can play a crucial role as you buckle-up to celebrate various upcoming festivals like Dussehra, Dhanteras and Diwali.
Here are 7 smart tips that you should follow to plan your finances well this festive season:
Make a Budget
Budgeting is 1st and most important step to smartly manage spending during the festive season or in general. Budget is always advised whether you are investing somewhere or even for your monthly expense. When you set a budget limit it means you have control of your money and on your expenditures. So this Diwali, making a budget should be the first thing that you should do. That's the beginning for saving money or to avoid overspending.
Track Your Spending
Tracking or keeping a record of your spending is the second most important move you need to make during festivals. Your budget does no good if you don’t effectively track your spending. Try to make a separate festival fund. This will make it easier to separate festivals spending from regular, day-to-day expenses.
Say NO to borrowing cash
This Diwali you need to take a pledge to not to borrow any amount of credit for spendings. Make a budget plan, maintain separate fund and keep a record of your expenses. In fact, you should not borrow any kind of loan as several banks and lending institutions come up with several loan offers during the festive times.
Say NO to Credit Cards this Diwali
Credit Card is boon for millennials during a financial crunch period, but overspending credit card limit is a bad idea. When you don’t have sufficient money, credit cards become the first alternate for you. But this is the thing you should try to avoid. When you use your credit card, you only think about that time: 'Let's use the card and will see in future as the EMIs will start from next month only' is a general thought process. And you think that from next month you will manage somehow. But you know better than this next month will never come if you keep on using your credit card like this. It will affect your future budget definitely.
Don't get carried away by festive season sale
As we know Diwali is nearer, several advertisements of sale or discount offer is a common practice to lure millennials. E-commerce websites or mart or outlets will attract you by giving attractive offers and all. Don’t buy anything just because it’s on sale, but if only you need it. Purchase only when it is needed.
Avoid impulse shopping
You may get things on great discounts, as the festive season is best for business houses and brands to make money. To increase their sales, all the businesses (both stores and shopping portals) come up with many offers like-bumper sale, festive season sale, end of session sale and many more. Once you see offers you start shopping in an impulse way because at that time it is very difficult for anyone to resist the temptation of shopping. However, you should ideally avoid getting into such a situation.
Opt for investment and saving this Diwali
Why not make a move that will help you to avoid doing any unnecessary expense instead of investment and secure your future. Saving is also not enough so you should plan something for investment this Diwali which will affect your finances in a positive way for many years. In fact, there is a tradition of celebrating Dhanteras in which people purchase gold and silver.
So, money management can play a balancing role between pre-festive and post-festive spending requirements. Follow these points this Diwali to manage your finances and see the difference. You will surely enjoy Diwali without any stress.